OneChicago, LLC (OCX), an equity finance exchange, today announced the launch of OCX.Weekly futures as part of the OCX.NoDivRisk™ futures product suite. Pending regulatory approval, OneChicago will be releasing its physically settled OCX.Weekly futures product with next day settlement for the stock delivery upon expiration.
Large institutional traders currently holding long equity positions are demanding a product which enables them to synthetically loan out their securities via the OneChicago exchange future for physical (“EFP”) trade. Additionally, the OCX.Weekly futures allow market participants to leverage it for short term investments of idle cash.
“This new product will allow funds to engage in short term equity financing transactions in a regulated and centrally cleared environment with the knowledge they can receive their original stock position back with five business days due to the next day settlement of stock,” said David Downey, CEO of OneChicago.
The OCX.Weekly futures will be available to trade for six days. The product is scheduled to list on Fridays and then expire the following Friday at the close of trading. Physically delivered OCX.Weekly Futures will overlay the same underlying as the OCX.Original (“1C”) futures and OCX.NoDivRisk futures (“1D”). Each weekly offering will have a separate OneChicago symbol which generally will be the underlying stock plus 1W for the first Friday of the month, 2W for the second Friday of the month, and so forth.
As part of the OCX.NoDivRisk futures product suite, the OCX.Weekly futures will be adjusted for any distributions during the time period they are listed. All other corporation actions are handled in the usual and customary way (please visit the rules and the corporate events section of at www.onechicago.com).
More information can be found at: www.onechicago.com/?page_id=2022